The food and beverage sector continued its upward momentum today (November 12), with the Food ETF (515710), reflecting the sector's overall performance, maintaining strong volatility after opening. The intraday price peaked at a 1.28% gain before settling at a 0.64% increase by press time.
Among constituent stocks, consumer staples led the gains, while several leading baijiu producers also shone. By press time, Tianwei Food surged over 3%, Yangyuan Beverage rose over 2%, and Yanjing Beer, Angel Yeast, and Dongpeng Beverage gained over 1%. Kweichow Moutai, Wuliangye, and Gujing Gongjiu also posted modest gains.
The rally follows Guizhou's consumption-boosting measures targeting the liquor industry. On November 10, the Guizhou Provincial Government held a press conference outlining policies to expand consumption, including initiatives to promote baijiu production and sales. Key measures include encouraging companies to enhance production and consumption through supply-demand matching, capitalizing on holiday seasons like New Year and Spring Festival, and launching promotional campaigns such as "Guizhou Baijiu China Tour" and "Guizhou Baijiu Global Tour." Additionally, the province plans to double baijiu exports and elevate the brand's global recognition and cultural influence.
Analysts note that Guizhou's policies go beyond short-term promotions, instead integrating baijiu consumption with industrial upgrades and cultural outreach. With initiatives like lifestyle marketing, a three-year export expansion plan, and heritage recognition efforts for traditional baijiu workshops, Guizhou's liquor sector may transcend cyclical downturns, evolving from a regional strength to a global brand.
Valuations in the food and beverage sector remain historically low, presenting a potential entry opportunity. As of November 11, the price-to-earnings ratio of the Food ETF's (515710) underlying index, the CSI Sub-Industry Food Index, stood at 21.21x—near a 10-year low at the 11.74th percentile—highlighting attractive long-term value.
Looking ahead, CICC research forecasts a gradual recovery in baijiu earnings by 2026, with demand rebounding as policy impacts fade and consumption scenarios stabilize. Low base effects from this year could drive year-on-year growth, with leading brands poised to benefit most.
GF Securities added that Q3 earnings divergence among liquor firms highlighted the resilience of top players. As quarterly pressures ease, the sector may enter 2026 with stronger fundamentals.
For exposure to the sector, investors can consider the Food ETF (515710), which tracks the CSI Sub-Industry Food & Beverage Index, allocating ~60% to premium baijiu leaders and ~40% to dairy, condiments, and beer stocks. Top holdings include Kweichow Moutai, Wuliangye, Luzhou Laojiao, Fenjiu, Yanghe, Yili, and Haitian Flavouring. The ETF’s feeder fund (Class A 012548/Class C 012549) offers an alternative for OTC investors.
Data source: SSE/SZSE, as of November 12, 2025.
Risk disclosure: The Food ETF passively tracks the CSI Sub-Industry Food & Beverage Index (base date: December 31, 2004; launch date: April 11, 2012). Index constituents are adjusted per its methodology, and past performance does not guarantee future results. Mentioned stocks are for illustrative purposes only and do not constitute recommendations. Investors should review fund documents and assess risk tolerance before investing. The CSRC's approval does not endorse the fund's prospects.
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